Donald Trump, on Sunday morning in social media, endorsed the Official Trump Token (TRUMP), directly promoting the Solana based meme coin that the President’s affiliated businesses hold a 80% stake.
"I LOVE $TRUMP—SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!" Trump Postings TruthSocial, at 1033AM ET coincided with an increase in price that briefly saw the token reach $12.25. However, it then experienced significant fluctuations.
CoinGecko’s data indicates that this asset is now up 7.7% for the day at $11.67. Even so, the asset is down 84% compared to its high point of $73.4. launched February.
The price action is "a sign that the market is no longer excitable about the Trump token," Luis Buenaventura, head of crypto at GCash, told Decrypt. This is still the case despite investors being aware "of its potential for small profits in short timescales."
While the token's website claims it is "not intended to be an investment opportunity," its value proposition appears inextricably linked to Trump's personal brand and ongoing promotion.
High-risk constitutional concerns
It has been a source of concern that a U.S. sitting president would promote a cryptocurrency asset to benefit his own business. Watchdogs for ethics Industry observers.
Andrew Rossow is a digital media lawyer and the CEO of AR Media – a brand consulting company that works globally. Decrypt that these activities have “unfortunately set a dangerous precedent for leveraging public office for personal financial gain."
Rossow lists three constitutional issues of high risk.
Here is the first of them: Clauses on Emoluments (Article 1, Sec. Rossow explained Article 9, which prevents sitting presidents from accepting “financial benefits” either by domestic entities or other governments, without approval from Congress.
The TRUMP token’s ownership structure allows foreign actors to buy tokens anonymously. This could violate these clauses, allowing indirect financial gain or an undue influence by foreigners over U.S. policies.
Rossow also cites Separation of Powers, Article II, Section 3, that requires the president “faithfully to execute laws.”
Rossow said that Trump’s support of a product linked to his wealth undermines the impartiality and integrity of regulatory agencies like SEC, CFTC. Decrypt.
Rossow also argues, in accordance with the Equal Protection and Due Process provisions of the Fifth Amendment that the preferential treatment given to tokens could “create an unequal playing field on the crypto-market, discouraging competitors.”
CIC Digital LLC, listed in Trump's financial disclosures as his company, and Fight Fight Fight LLC collectively control the vast majority of the token's supply, according to the project's official You can find out more about this by clicking here..
They stand to gain financially through increased trade and price appreciation.
Rossow explained that the federal ethics laws prevent public officials “from engaging in activities” which could create conflicts of interest between public duty and personal interests. Trump’s involvement is “directly in conflict with his role of president”, as the affiliated entities own 80% of tokens.
Earlier this week, World Liberty Financial, a project of decentralized financing associated with the Trump Family and principals from DT Marks DEFI LLC. Profits of approximately $390 Million The second token sale is now underway.
The TRUMP token's launch follows the president's campaign pledges to make the U.S. a leader in crypto, including to establish a Bitcoins for strategic reserve You can also read about the advantages of using end to the Federal Reserve's independence via select crypto policy.
The representatives of President Trump have not responded immediately. Decrypt’s Commentary is requested.
Sebastian Sinclair edited the book
